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Previous: DOBSON COMMUNICATIONS CORP, S-1/A, 2000-01-27 |
Next: MEDICAL RESOURCES MANAGEMENT INC, NT 10-K, 2000-01-27 |
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
JANUARY 25, 2000
BOSTON PROPERTIES, INC.
(Exact name of Registrant as specified in its charter)
DELAWARE 1-13087 04-2473675
(State or other jurisdiction (Commission File (I.R.S. employer
of incorporation) Number) Identification No.)
800 BOYLSTON STREET
BOSTON, MASSACHUSETTS 02199
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code:
(617) 236-3300
<PAGE>
ITEM 5. OTHER EVENTS
Following the issuance of a press release on January 25, 2000,
announcing the Company's results for the fourth quarter ended December 31, 1999,
the Company intends to provide, to certain investors and analysts at their
request, supplemental information regarding the Company's operations that is to
voluminous for a press release. The Company is attaching this supplementary
operating and financial data as Exhibit 99.1 and the press release as Exhibit
99.2 to this Current Report on Form 8-K.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(c) Exhibits
EXHIBIT NO.
99.1 The Boston Properties, Inc. Supplemental Operating and Financial Data
for the quarter ended December 31, 1999.
99.2 The Boston Properties, Inc. press release dated January 25, 2000 for
the quarter ended December 31, 1999.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: January 26, 2000 BOSTON PROPERTIES, INC.
/s/ David G. Gaw
-----------------------------
By: David G. Gaw
Chief Financial Officer
<PAGE>
Exhibit 99.1
BOSTON PROPERTIES, INC.
SUPPLEMENTAL OPERATING AND FINANCIAL DATA
FOR THE QUARTER ENDED DECEMBER 31, 1999
<PAGE>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 1999
INDEX
<TABLE>
<CAPTION>
Page Page
---- ----
<S> <C> <C> <C>
Company Background 2 Office Properties 16
Investor Information 3-4 R&D Properties 17
Financial Highlights 5 Industrial Properties 18
Consolidated Balance Sheets 6 Grand Total - Office, R&D and Industrial Properties 19
Consolidated Income Statements 7 Hotel Performance 20
Funds From Operations 8 Same Property Performance 21
Financial Ratios 9 "In-Service" Property Performance 22
Capital Structure 10 Capital Expenditures 23
Debt Analysis 11 Value Creation Pipeline - Acquisitions/Dispositions/Repositions 24
Joint Ventures 12 Value Creation Pipeline - Development 25
Portfolio Overview 13-14 Value Creation Pipeline - Land Parcels 26
Occupancy Analysis 15
</TABLE>
1
<PAGE>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 1999
COMPANY BACKGROUND
Boston Properties is a fully integrated, self-administered and self-managed
real estate investment trust that develops, redevelops, acquires, manages,
operates and owns a diverse portfolio of office, industrial and hotel
properties. The Company is one of the largest owners and developers of
office properties in the United States, concentrated in the Northeast
Corridor from Virginia to Greater Boston and in greater San Francisco.
On June 23, 1997, Boston Properties successfully completed its initial
public offering. The offering and the underwriters over-allotment option
closed on the same date resulting in 36,110,000 shares being sold at $25.00
per share for a total offering of $902,750,000. On January 30,1998, the
Company closed a follow-on offering of 23,000,000 shares (including the
underwriters' over-allotment) at $35.125 per share for a total offering of
$807,875,000. On May 20, 1999, the Company raised an additional
$141,002,500, net of issuance costs, through the issuance of 4,000,000
shares.
Through its predecessor company founded by Mortimer B. Zuckerman and Edward
H. Linde in 1970, the Company grew through the seventies, eighties, and
nineties by developing and redeveloping Class A office properties, R&D and
industrial properties, and hotels in its primary markets of greater Boston,
greater Washington, DC, and midtown Manhattan.
Since the Company's Initial Offering in June 1997, the Company has acquired
44 properties adding approximately 15.6 million square feet to its
portfolio, representing an investment of approximately $3.8 billion. In
addition, the Company is developing twelve Class A Office Buildings for a
total anticipated investment of approximately $1.1 billion. The Company
owns or controls land where it can develop an additional 9.3 million square
feet.
2
<PAGE>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 1999
INVESTOR INFORMATION
800 Boylston Street
Boston, MA 02199
(617) 236-3300
(617) 536-5087 (fax)
<TABLE>
<S> <C>
Mortimer B. Zuckerman Chairman of the Board
Edward H. Linde President, Chief Executive Officer and Director
Robert E. Burke Executive Vice President, Operations
Douglas T. Linde Senior Vice President, Financial and Capital Markets
David G. Gaw Senior Vice President, Chief Financial Officer
Elaine M. Quinlan Director of Investor Relations
</TABLE>
TIMING
Quarterly results for 2000 will be announced according to the following
anticipated schedule:
<TABLE>
<S> <C>
First Quarter 2000 Early May
Second Quarter 2000 Early August
Third Quarter 2000 Early November
Year End 2000 Early February
</TABLE>
3
<PAGE>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 1999
COMMON STOCK DATA (NYSE:BXP)
Boston Properties' common stock is traded primarily on the New York Stock
Exchange under the symbol: BXP. BXP's common stock has had the following
characteristics:
<TABLE>
<CAPTION>
4th Quarter 1999 4th Quarter 1998
---------------- ----------------
<S> <C> <C>
High Price $ 31.1250 $ 32.5000
Low Price $ 27.5000 $ 26.6250
Closing Price $ 31.1250 $ 30.5000
Dividends per share - annualized $ 1.80 $ 1.70
Closing dividend yield - annualized 5.78% 5.57%
Closing shares, common units and preferred units
(if converted) outstanding (thousands) 104,721 97,780
Closing market value of shares and units outstanding
(thousands) $ 3,259,441 $ 2,982,294
</TABLE>
4
<PAGE>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 1999
FINANCIAL HIGHLIGHTS
(UNAUDITED AND IN THOUSANDS)
<TABLE>
<CAPTION>
Three Months Ended
---------------------------------------------------
December 31, 1999 December 31, 1998 % Change
----------------- ----------------- --------
<S> <C> <C> <C>
Income Items:
Revenues $ 205,147 $ 170,026 20.66%
Net Income available to common shareholders $ 34,372 $ 18,226 88.59%
Funds from Operations $ 69,634 $ 59,711 16.62%
Company's share (74.04% and 73.03%) $ 51,555 $ 43,607 18.23%
Funds from Operations per share - basic $ 0.76 $ 0.69 10.60%
Funds from Operations per share - diluted $ 0.74 $ 0.68 9.09%
Dividends per share $ 0.45 $ 0.425 5.88%
Ratios:
Interest Coverage Ratio 2.47 2.41 2.66%
Dividend Payout Ratio 60.66% 62.51% -2.96%
</TABLE>
<TABLE>
<CAPTION>
December 31, 1999 December 31, 1998 % Change
----------------- ----------------- --------
Capitalization:
---------------
<S> <C> <C> <C>
Total Debt $ 3,321,584 $ 3,088,724 7.54%
Total Common Shares Outstanding @ Quarter End 67,910 63,528 6.90%
Total Preferred Shares Outstanding @ Quarter End
(if converted) 2,625 -- --
Total Common Units Outstanding @ Quarter End 23,810 23,798 0.05%
Total Preferred Units Outstanding @ Quarter End
(if converted) 10,376 10,454 -0.75%
Price @ Quarter End $ 31.1250 $ 30.500 2.05%
Equity Value @ Quarter End $ 3,259,441 $ 2,982,294 9.29%
Total Market Capitalization $ 6,581,025 $ 6,071,018 8.40%
Debt/Total Market Capitalization 50.47% 50.88% -0.79%
</TABLE>
5
<PAGE>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 1999
CONSOLIDATED BALANCE SHEETS
(UNAUDITED AND IN THOUSANDS)
<TABLE>
<CAPTION>
December 31, 1999 December 31, 1998
----------------- -----------------
<S> <C> <C>
ASSETS
Real estate and equipment $ 5,150,341 $ 4,725,757
Land and development in progress 461,917 191,436
Less accumulated depreciation (470,591) (357,384)
----------- -----------
Total real estate and equipment 5,141,667 4,559,809
Cash 12,035 12,166
Escrows 40,254 19,014
Notes receivable - 420,143
Tenant and other receivables 28,362 40,830
Accrued rental income 82,228 64,251
Deferred charges, net 50,899 46,029
Prepaid expenses and other assets 42,912 26,058
Investment in joint ventures 36,415 46,787
----------- -----------
Total assets $ 5,434,772 $ 5,235,087
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgage notes payable $ 2,955,584 $ 2,653,581
Notes payable - 420,143
Unsecured line of credit 366,000 15,000
Accounts payable and accrued expenses 66,780 42,897
Dividends payable 50,114 40,494
Accrued interest payable 8,486 7,307
Other liabilities 48,282 27,950
----------- -----------
Total liabilities 3,495,246 3,207,372
----------- -----------
Commitments and contingencies - -
----------- -----------
Minority interests 781,962 1,079,234
----------- -----------
Series A Convertible Redeemable Preferred
Stock, liquidation preference $50.00 per share,
2,000,000 shares issued and outstanding 100,000 -
----------- -----------
Stockholders' Equity:
Excess stock, $.01 par value, 150,000,000 shares
authorized, none issued or outstanding - -
Common stock, $.01 par value, 250,000,000 shares
authorized, 67,910,434 and 63,527,819 issued
and outstanding, respectively 679 635
Additional paid-in capital 1,067,778 955,711
Dividend in excess of earnings (10,893) (7,865)
----------- -----------
Total stockholders' equity 1,057,564 948,481
----------- -----------
Total liabilities and stockholders' equity $ 5,434,772 $ 5,235,087
=========== ===========
</TABLE>
6
<PAGE>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 1999
CONSOLIDATED INCOME STATEMENTS
(unaudited and in thousands)
<TABLE>
<CAPTION>
Three Months Ended
-------------------------------------
31-Dec-99 31-Dec-98 % Change
--------- --------- --------
<S> <C> <C> <C>
Revenue:
Rental
Base Rent $ 170,663 $ 140,109 21.81%
Recoveries from tenants 18,864 15,671 20.38%
Parking and other 11,479 6,280 82.79%
--------- --------- --------
Total rental revenue 201,006 162,060 24.03%
Development and management services 3,344 3,517 -4.92%
Interest and other 797 4,449 -82.09%
--------- --------- --------
Total revenue 205,147 170,026 20.66%
--------- --------- --------
Expenses:
Rental expenses 64,947 53,303 21.84%
General and administrative 8,110 5,753 40.97%
Interest 53,964 42,934 25.69%
Depreciation and amortization 31,744 24,205 31.15%
--------- --------- --------
Total expenses 158,765 126,195 25.81%
--------- --------- --------
Income before minority interests
and before loss from unconsolidated joint ventures 46,382 43,831 5.82%
Minority interest in property partnerships (141) (2,163) -93.48%
Loss from unconsolidated joint ventures (180) -- --
--------- --------- --------
Income before preferred distribution and minority
interest in Operating Partnership 46,061 41,668 10.54%
Preferred distribution (6,649) (4,325) 53.73%
Minority interest in Operating Partnership (1) (9,803) (10,072) -2.67%
--------- --------- --------
Income before gain on sale and extraordinary loss 29,609 27,271 8.57%
Gain on sale of real estate, net 6,417 -- --
Extraordinary loss, net -- (9,045) -100.00%
--------- --------- --------
Income before preferred dividend 36,026 18,226 97.66%
Preferred dividend (1,654) -- --
--------- --------- --------
Net income available to common shareholders $ 34,372 $ 18,226 88.59%
========= ========= ========
INCOME PER SHARE OF COMMON STOCK
Income before extraordinary item and gain
on sale - basic $ 0.41 $ 0.43 -4.65%
========= ========= ========
Income before extraordinary item and gain
on sale - diluted 0.41 $ 0.40 2.50%
========= ========= ========
Net income available to common shareholders
per share - basic $ 0.51 $ 0.29 75.86%
========= ========= ========
Net income available to common shareholders
per share - diluted $ 0.50 $ 0.27 85.19%
========= ========= ========
</TABLE>
(1) Equals minority interest percent (25.96% and 26.97%,
respectively) of income before minority interest in Operating
Partnership after deduction for preferred dividends and
distributions.
7
<PAGE>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 1999
FUNDS FROM OPERATIONS
(IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS)
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
--------------------------------
31-Dec-99 31-Dec-98 % Change
--------- --------- --------
<S> <C> <C> <C>
Income from operations before minority interests and before loss
from unconsolidated joint ventures $ 46,382 $ 43,831 5.82%
Add:
Real estate depreciation and amortization 31,914 23,930 33.36%
Less:
Loss from unconsolidated joint ventures 180 -- --
Minority property partnership's share of funds from operations 179 3,725 -95.19%
Preferred allocation 8,303 4,325 91.98%
-------- -------- ------
Funds from Operations $ 69,634 $ 59,711 16.62%
======== ======== ======
Funds from Operations available to common shareholders (1) $ 51,555 $ 43,607 18.23%
======== ======== ======
Funds from Operations per share - basic $ 0.76 $ 0.69 10.60%
======== ======== ======
Weighted average shares outstanding - basic 67,906 63,528 6.89%
======== ======== ======
Funds from Operations per share - diluted $ 0.74 $ 0.68 8.82%
======== ======== ======
Weighted average shares outstanding - diluted 81,248 68,432 18.73%
======== ======== ======
</TABLE>
(1) Based on weighted average shares for the quarter. Company's share
for the quarter ended 12/31/99 was 74.04% and 73.03% for the
quarter ended 12/31/98.
RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS
<TABLE>
<CAPTION>
For the Three Months Ended December 31, 1999 For the Three Months Ended December 31, 1998
-------------------------------------------- --------------------------------------------
Income Shares Per Share Income Shares Per Share
(Numerator) (Denominator) Amount (Numerator) (Denominator) Amount
<S> <C> <C> <C> <C> <C> <C>
Basic Funds from Operations $ 69,634 91,720 $ 0.76 $ 59,711 86,991 $ 0.69
Effect of Dilutive Securities
Convertible Preferred Units 6,649 10,377 (0.01) 2,820 4,501 (0.01)
Convertible Preferred Stock 1,654 2,625 - - - -
Stock Options - 341 (0.01) - 403 -
--------- ------- ------- --------- ------ -------
Dilutive Funds from Operations (1) $ 77,937 105,063 $ 0.74 $ 62,531 91,895 $ 0.68
--------- ------- ------- --------- ------ -------
Company's share of Diluted Funds
from Operations $ 60,271 81,248 $ 0.74 $ 46,565 68,432 $ 0.68
--------- ------- ------- --------- ------ -------
</TABLE>
(1) Based on weighted average diluted shares for the quarter. Company's
share for the quarter ended 12/31/99 was 77.33% and 74.47% for the
quarter ended 12/31/98.
8
<PAGE>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 1999
FINANCIAL RATIOS
<TABLE>
<CAPTION>
Three months ended
December 31, 1999
-----------------
<S> <C>
RATIOS COMPUTED FOR INDUSTRY COMPARISONS:
OPERATIONAL RATIOS (1,2)
Debt Service Coverage Ratio 2.15
(EBITDA + Income from Unconsolidated Joint Ventures)/(Interest+Principal)
Interest Coverage Ratio 2.47
(EBITDA + Income from Unconsolidated Joint Venture)/Interest
Return on Shareholder's Equity 15.97%
(EBITDA - Interest)/Average Equity (book value) (%)
Return on Real Estate Investments 10.28%
(EBITDA/Average Real Estate Investments (book value)) (%)
FFO Payout Ratio 60.81%
(Dividends Declared/FFO) (%)
</TABLE>
(1) EBITDA is equal to earnings before interest, taxes, depreciation and
amortization.
(2) FFO is calculated based on the NAREIT White Paper.
9
<PAGE>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 1999
CAPITAL STRUCTURE
DEBT
(IN THOUSANDS)
<TABLE>
<CAPTION>
Aggregate Principal
December 31, 1999
-----------------
<S> <C>
Mortgage Loans $ 2,955,584
Unsecured Line of Credit 366,000
-----------
Total Debt $ 3,321,584
===========
</TABLE>
EQUITY
(IN THOUSANDS)
<TABLE>
<CAPTION>
Common
Shares & Units Stock $ Value
Outstanding Equivalents Equivalent (1)
----------- ----------- --------------
<S> <C> <C> <C>
Common Stock 67,910 67,910 $ 2,113,699
Preferred Stock 2,000 2,625 81,703
Operating Partnership Units 23,810 23,810 741,086
Preferred Operating Partnership Units 8,713 10,376 322,953
------- -----------
Total Equity 104,721 $ 3,259,441
======= ===========
Total Market Capitalization $ 6,581,025
===========
</TABLE>
(1) Value based on December 31, 1999 closing price of $31.125.
10
<PAGE>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 1999
DEBT ANALYSIS
LONG-TERM DEBT MATURITIES AND PRINCIPAL PAYMENTS
(IN THOUSANDS)
<TABLE>
<CAPTION>
Year 2000 2001 2002 2003 2004 Thereafter Total
---- ---- ---- ---- ---- ---- ---------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Amount 679,545 150,010 417,331 212,874 32,935 1,828,889 $ 3,321,584
</TABLE>
<TABLE>
<CAPTION>
UNSECURED LINE OF CREDIT - DUE JUNE 23, 2000
(IN THOUSANDS)
Outstanding Letters of Remaining
Facility @ 12/31/1999 Credit Capacity
-------- ------------ ---------- --------
<S> <C> <C> <C>
$ 500,000 366,000 26,154 $ 107,846
</TABLE>
<TABLE>
<CAPTION>
UNSECURED AND SECURED DEBT ANALYSIS
Weighted Weighted Average
% of Debt Average Rate Maturity
--------- ------------ --------
<S> <C> <C> <C>
Unsecured Debt 11.02% 7.70% 0.5 years
Secured Debt 88.98% 7.07% 6.1 years
----- ---- ---------
Total Debt 100.00% 7.14% 5.5 years
====== ==== =========
</TABLE>
<TABLE>
<CAPTION>
FLOATING AND FIXED RATE DEBT ANALYSIS
Weighted Weighted Average
% of Debt Average Rate Maturity
--------- ------------ --------
<S> <C> <C> <C>
Floating Rate Debt 15.08% 7.61% 0.8 years
Fixed Rate Debt 84.92% 7.06% 6.3 years
------ ---- ---------
Total Debt 100.00% 7.14% 5.5 years
====== ==== =========
</TABLE>
11
<PAGE>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 1999
JOINT VENTURES
as of December 31, 1999
<TABLE>
<CAPTION>
One One and Two Market
Freedom Reston Square
Square Overlook North Combined
---------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Total Equity (1) $ 5,662 $ 124 $ 30,629 $ 36,415
======== ======== ======== ========
Mortgage/Construction loans payable (1) $ 12,065 $ 17,211 $ 23,541 $ 52,817
======== ======== ======== ========
BXP's ownership percentage 25.00% 25.00% 50.00%
======== ======== ========
(1) Represents the Company's share.
</TABLE>
RESULTS OF OPERATIONS FOR THE IN-SERVICE JOINT VENTURES
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
One One and Two Market
Freedom Reston Square
Square Overlook North (1) Combined
---------------- ------------- ------------- -------------
REVENUE
<S> <C> <C> <C> <C>
Total rental revenue $ 1,250 $ 10,204 $ 1,228 $ 12,682
Interest and other 5 76 73 154
-------- --------- -------- ----------
Total revenue 1,255 10,280 1,301 12,836
-------- --------- -------- ----------
EXPENSES
Operating 264 2,252 782 3,298
Interest 328 2,905 544 3,777
Depreciation and amortization 250 2,513 545 3,308
-------- --------- -------- ----------
Total expenses 842 7,670 1,871 10,383
-------- --------- -------- ----------
Net income $ 413 $ 2,610 $ (570) $ 2,453
======== ========= ======== ==========
</TABLE>
(1) Represents the residential portion of the joint venture only.
12
<PAGE>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 1999
PORTFOLIO OVERVIEW
RENTABLE SQUARE FEET OF IN-SERVICE PROPERTIES BY LOCATION AND TYPE OF PROPERTY
<TABLE>
<CAPTION>
Geographic Area Office (1) R&D Industrial Total % of Total
--------------- ---------- --- ---------- ----- ----------
<S> <C> <C> <C> <C> <C>
Greater Boston 5,424,260 545,206 247,318 6,216,784 24.64%
Greater Washington, D.C. 5,494,351 (2) 1,382,925 237,195 7,114,471 28.20%
Greater San Francisco 4,496,368 144,391 280,213 4,920,972 19.51%
Midtown Manhattan 2,875,854 - - 2,875,854 11.40%
Princeton/East Brunswick, NJ 1,870,493 - - 1,870,493 7.41%
Baltimore, MD 1,173,706 - - 1,173,706 4.65%
Richmond, VA 895,496 - - 895,496 3.55%
Bucks County, PA - - 161,000 161,000 0.64%
---------- --------- ------- --------- ------
22,230,528 2,072,522 925,726 25,228,776 100.00%
========== ========= ======= ========== ======
% of Total 88.12% 8.21% 3.67% 100.00%
</TABLE>
(1) Includes retail square footage of approximately 1,000,000.
(2) Includes 444,286 square feet at One and Two Reston Overlook which are
25% owned by Boston Properties, and 414,120 square feet at One Freedom
Square which is 25% owned by Boston Properties. Subsequent to 12/31/99,
Boston Properties acquired the remaining interest in One and Two Reston
Overlook.
HOTEL PROPERTIES
<TABLE>
<CAPTION>
Number of Square
Hotel Properties Rooms Feet
---------------- ----- ----
<S> <C> <C>
Long Wharf Marriott, Boston, MA 402 420,000
Cambridge Center Marriott, Cambridge, MA 431 330,400
Residence Inn by Marriott, Cambridge, MA 221 187,474
----- -------
Total Hotel Properties 1,054 937,874
===== =======
</TABLE>
GARAGE PROPERTY AND STRUCTURED PARKING
<TABLE>
<CAPTION>
Number of Square
Spaces Feet
------ ----
<S> <C> <C>
Garage Properties
Cambridge Center North Garage 1,170 332,442
Structured Parking 15,556 5,518,779
------ ---------
Total Garage Property and Structured Parking 16,726 5,851,221
====== =========
</TABLE>
13
<PAGE>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 1999
PORTFOLIO OVERVIEW
PERCENTAGE OF PROPERTY FUNDS FROM OPERATIONS* FOR IN-SERVICE
PROPERTIES BY LOCATION AND TYPE OF PROPERTY FOR THE QUARTER
ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
Geographic Area Office (1) R&D Industrial Hotel Garage Total
--------------- ------ --- ---------- ----- ------ -----
<S> <C> <C> <C> <C> <C> <C>
Greater Boston 19.3% 0.8% 0.2% 5.7% 0.4% 26.4%
Greater Washington, D.C. 21.0% 2.9% 0.2% n/a n/a 24.1%
Greater San Francisco 19.2% 0.2% 0.2% n/a n/a 19.6%
Midtown Manhattan 16.6% n/a n/a n/a n/a 16.6%
Baltimore, MD 4.0% n/a n/a n/a n/a 4.0%
Richmond, VA 2.9% n/a n/a n/a n/a 2.9%
Princeton/East Brunswick, NJ 6.4% n/a n/a n/a n/a 6.4%
Bucks County, PA n/a n/a 0.1% n/a n/a 0.1%
----- ---- ---- ---- ---- -----
Total 89.4% 3.9% 0.7% 5.7% 0.4% 100.0%
===== ==== ==== ==== ==== ======
</TABLE>
(1) Includes Retail Center FFO (Prudential Center Boston and
Embarcadero Center).
* For this table, Property Funds from Operations is equal to GAAP
basis property NOI which includes the effect of straight-line rent
and excludes any deduction for interest expense.
14
<PAGE>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 1999
OCCUPANCY ANALYSIS
SAME PROPERTY OCCUPANCY - BY LOCATION
<TABLE>
<CAPTION>
Location 31-Dec-99 31-Dec-98
-------- --------- ---------
<S> <C> <C>
Greater Boston, MA 98.3% 97.4%
Greater Washington, D.C. 97.6% 98.5%
Midtown Manhattan, NY 97.8% 99.9%
Baltimore, MD 99.7% 99.8%
Princeton/East Brunswick, NJ 98.4% 98.7%
Richmond, VA 98.0% 98.8%
Greater San Francisco, CA 93.0% 95.0%
Bucks County, PA 100.0% 100.0%
----- -----
Total Portfolio 98.0% 98.4%
===== =====
</TABLE>
SAME PROPERTY - BY TYPE OF PROPERTY
<TABLE>
<CAPTION>
31-Dec-99 31-Dec-98
--------- ---------
<S> <C> <C>
Total Office Portfolio 99.1% 98.9%
Total R&D Portfolio 93.0% 99.2%
Total Industrial Portfolio 90.4% 89.3%
---- ----
Total Portfolio 98.0% 98.4%
==== ====
</TABLE>
15
<PAGE>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 1999
IN-SERVICE OFFICE PROPERTIES
LEASE EXPIRATIONS
<TABLE>
<CAPTION>
Annualized
Rentable Square Current Annualized Revenues Under
Year of Lease Footage Subject to Revenues Under Expiring Leases Percentage of Total
Expiration Expiring Leases Expiring Leases with future step-ups Square Feet Expiring
---------- --------------- --------------- -------------------- --------------------
<S> <C> <C> <C> <C>
2000 1,170,503 $ 33,773,391 $ 34,432,236 5.55%
2001 2,312,716 69,693,515 69,718,038 10.97%
2002 2,086,481 79,681,095 79,843,101 9.90%
2003 1,747,588 54,362,413 55,393,116 8.29%
2004 2,462,090 84,113,166 87,772,545 11.68%
2005 1,399,492 39,188,152 43,339,862 6.64%
2006 2,582,791 83,335,757 90,869,323 12.25%
2007 1,552,892 62,519,137 64,132,681 7.37%
2008 849,137 29,137,289 27,655,022 4.03%
2009 1,738,208 55,851,129 65,362,866 8.25%
Thereafter 3,175,569 97,243,523 116,103,401 15.07%
</TABLE>
OCCUPANCY BY LOCATION
<TABLE>
<CAPTION>
31-Dec-99 31-Dec-98
--------- ---------
<S> <C> <C>
Greater Boston, MA 97.5% 96.9%
Greater Washington, D.C. 97.9% 99.8%
Midtown Manhattan, NY 97.8% 99.9%
Baltimore, MD 99.7% 99.8%
Richmond, VA 98.0% 98.8%
Princeton/East Brunswick, NJ 98.9% 98.7%
Greater San Francisco, CA 96.7% 98.9%
Bucks County, PA n/a n/a
----- -----
Total Office Portfolio 97.7% 98.8%
===== =====
</TABLE>
16
<PAGE>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 1999
IN-SERVICE R&D PROPERTIES
LEASE EXPIRATIONS
<TABLE>
<CAPTION>
Annualized
Rentable Square Current Annualized Revenues Under
Year of Lease Footage Subject to Revenues Under Expiring Leases Percentage of Total
Expiration Expiring Leases Expiring Leases with future step-ups Square Feet Expiring
---------- --------------- --------------- -------------------- --------------------
<S> <C> <C> <C> <C>
2000 562,746 $ 6,185,227 $ 6,186,711 28.50%
2001 206,391 2,432,007 2,485,459 10.45%
2002 348,246 4,880,316 5,016,052 17.63%
2003 21,109 283,978 304,125 1.07%
2004 84,881 1,174,385 1,311,777 4.30%
2005 148,330 1,768,530 1,881,250 7.51%
2006 150,000 1,737,261 1,849,761 7.60%
2007 107,895 2,249,504 2,295,688 5.46%
2008 59,838 748,704 981,557 3.03%
2009 - - - 0.00%
Thereafter 285,371 4,858,734 5,804,441 14.45%
</TABLE>
OCCUPANCY BY LOCATION
<TABLE>
<CAPTION>
31-Dec-99 31-Dec-98
--------- ---------
<S> <C> <C>
Greater Boston, MA 90.8% 100.0%
Greater Washington, D.C. 93.9% 99.0%
Midtown Manhattan, NY n/a n/a
Baltimore, MD n/a n/a
Richmond, VA n/a n/a
Princeton/East Brunswick, NJ n/a n/a
Greater San Francisco, CA 93.3% 99.0%
Bucks County, PA n/a n/a
----- -----
Total R&D Portfolio 93.0% 99.2%
===== =====
</TABLE>
17
<PAGE>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 1999
IN-SERVICE INDUSTRIAL PROPERTIES
LEASE EXPIRATIONS
<TABLE>
<CAPTION>
Annualized
Rentable Square Current Annualized Revenues Under
Year of Lease Footage Subject to Revenues Under Expiring Leases Percentage of Total
Expiration Expiring Leases Expiring Leases with future step-ups Square Feet Expiring
---------- --------------- --------------- -------------------- --------------------
<S> <C> <C> <C> <C>
2000 255,405 $ 1,419,588 $ 1,419,588 30.53%
2001 70,829 361,224 361,224 8.47%
2002 23,904 204,985 204,985 2.86%
2003 147,305 976,093 1,040,146 17.61%
2004 235,076 1,284,715 1,380,791 28.10%
2005 20,500 125,698 140,832 2.45%
2006 - - - 0.00%
2007 - - - 0.00%
2008 83,608 736,586 809,782 9.99%
2009 - - - 0.00%
Thereafter - - - 0.00%
</TABLE>
OCCUPANCY BY LOCATION
<TABLE>
<CAPTION>
31-Dec-99 31-Dec-98
--------- ---------
<S> <C> <C>
Greater Boston, MA 93.0% 93.0%
Greater Washington, D.C. 78.2% 73.9%
Midtown Manhattan, NY n/a n/a
Baltimore, MD n/a n/a
Richmond, VA n/a n/a
Princeton/East Brunswick, NJ n/a n/a
Greater San Francisco, CA 92.9% 92.9%
Bucks County, PA 100.0% 100.0%
----- -----
Total Industrial Portfolio 90.4% 89.3%
===== =====
</TABLE>
18
<PAGE>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 1999
GRAND TOTAL OF ALL
IN-SERVICE PROPERTIES
LEASE EXPIRATION
<TABLE>
<CAPTION>
Annualized
Rentable Square Current Annualized Revenues Under
Year of Lease Footage Subject to Revenues Under Expiring Leases Percentage of Total
Expiration Expiring Leases Expiring Leases with future step-ups Square Feet Expiring
---------- --------------- --------------- -------------------- --------------------
<S> <C> <C> <C> <C>
2000 1,988,654 $ 41,378,206 $ 42,038,535 8.32%
2001 2,589,936 72,486,746 72,564,721 10.84%
2002 2,458,631 84,766,396 85,064,138 10.29%
2003 1,916,002 55,622,484 56,737,387 8.02%
2004 2,782,047 86,572,266 90,465,113 11.65%
2005 1,568,322 41,082,380 45,361,944 6.57%
2006 2,732,791 85,073,018 92,719,084 11.44%
2007 1,660,787 64,768,641 66,428,369 6.95%
2008 992,583 30,622,579 29,446,361 4.15%
2009 1,738,208 55,851,129 65,362,866 7.28%
Thereafter 3,460,940 102,102,257 121,907,842 14.49%
</TABLE>
OCCUPANCY BY LOCATION
<TABLE>
<CAPTION>
31-Dec-99 31-Dec-98
--------- ---------
<S> <C> <C>
Greater Boston, MA 96.7% 97.0%
Greater Washington, D.C. 96.4% 98.5%
Midtown Manhattan, NY 97.8% 99.9%
Baltimore, MD 99.7% 99.8%
Richmond, VA 98.0% 98.8%
Princeton/East Brunswick, NJ 98.9% 98.7%
Greater San Francisco, CA 96.4% 98.5%
Bucks County, PA 100.0% 100.0%
----- -----
Total Portfolio 97.1% 98.4%
===== =====
</TABLE>
19
<PAGE>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 1999
HOTEL PERFORMANCE
SAME PROPERTY HOTELS
LONG WHARF MARRIOTT - BOSTON
<TABLE>
<CAPTION>
Fourth Quarter Fourth Quarter Percent YTD YTD Percent
1999 1998 Change 1999 1998 Change
---- ---- ------ ---- ---- ------
<S> <C> <C> <C> <C> <C> <C>
Occupancy 82.37% 82.60% -0.28% 87.70% 87.50% 0.2%
Average Daily Rate $ 244.31 $ 218.90 11.61% $ 240.79 $ 226.46 6.3%
REVPAR $ 201.24 $ 180.81 11.30% $ 211.17 $ 198.15 6.6%
</TABLE>
CAMBRIDGE CENTER MARRIOTT
<TABLE>
<CAPTION>
Fourth Quarter Fourth Quarter Percent YTD YTD Percent
1999 1998 Change 1999 1998 Change
---- ---- ------ ---- ---- ------
<S> <C> <C> <C> <C> <C> <C>
Occupancy 76.23% 76.00% 0.30% 83.70% 83.60% 0.1%
Average Daily Rate $ 201.18 $ 179.32 12.19% $ 191.63 $ 181.15 5.8%
REVPAR $ 153.36 $ 136.28 12.53% $ 160.39 $ 151.44 5.9%
</TABLE>
TOTAL SAME PROPERTY HOTEL PERFORMANCE
<TABLE>
<CAPTION>
Fourth Quarter Fourth Quarter Percent YTD YTD Percent
1999 1998 Change 1999 1998 Change
---- ---- ------ ---- ---- ------
<S> <C> <C> <C> <C> <C> <C>
Occupancy 79.19% 79.20% -0.01% 85.63% 85.50% 0.2%
Average Daily Rate $ 221.99 $ 198.42 11.88% $ 215.35 $ 203.02 6.1%
REVPAR $ 176.47 $ 157.77 11.85% $ 184.90 $ 173.98 6.3%
</TABLE>
1999 PLACED-IN-SERVICE HOTEL
RESIDENCE INN BY MARRIOTT
<TABLE>
<CAPTION>
Fourth Quarter Fourth Quarter Percent YTD YTD Percent
1999 1998 Change 1999 1998 Change
---- ---- ------ ---- ---- ------
<S> <C> <C> <C> <C> <C> <C>
Occupancy 86.83% N/A N/A 84.60% N/A N/A
Average Daily Rate $ 150.26 N/A N/A $ 154.64 N/A N/A
REVPAR $ 130.47 N/A N/A $ 130.83 N/A N/A
</TABLE>
20
<PAGE>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 1999
SAME PROPERTY PERFORMANCE
OFFICE, R&D, INDUSTRIAL AND HOTEL PROPERTIES
<TABLE>
<CAPTION>
Office R&D Industrial Hotel Garage Total
------ --- ---------- ----- ------ -----
<S> <C> <C> <C> <C> <C> <C>
Number of Properties 59 32 9 2 1 103
Square feet 14,873,807 2,072,522 925,726 750,400 332,442 18,954,897
Percent of in-service properties 66.9% 100.0% 100.0% 80.0% 100% 71.5%
Occupancy @ 12/31/98 98.9% 99.2% 89.3% - - 98.4%
Occupancy @ 12/31/99 99.1% 95.6% 90.4% - - 98.3%
Percent change from 4th quarter 1999
over 4th quarter 1998:
Revenue 2.3% 5.4% 0.8% 10.8% 64.9% 3.0%
Expense -0.2% -3.0% 2.0% 0.1% 35.1% -0.1%
Net Operating Income 3.5% 7.5% 0.5% 12.9% 82.3% 4.5%
</TABLE>
SAME PROPERTY LEASE ANALYSIS - QUARTER ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
Office R&D Industrial Total
------ --- ---------- -----
<S> <C> <C> <C> <C>
Vacant space available @ 10/1/99 (sf) 116,673 87,024 89,099 292,796
Square footage of leases expiring or
terminated 10/1/99-12/31/99 367,019 115,632 63,904 546,555
------- ------- ------- -------
Total space for lease (sf) 483,692 202,656 153,003 839,351
------- ------- ------- -------
New tenants (sf) 136,602 2,094 63,904 202,600
Renewals (sf) 214,971 56,017 - 270,988
------- ------- ------- -------
Total space leased (sf) 351,573 58,111 63,904 473,588
------- ------- ------- -------
Space available @ 12/31/99 (sf) 132,119 144,545 89,099 365,763
------- ------- ------- -------
Net increase (decrease) in leased space (sf) (15,446) (57,521) - (72,967)
======= ======= ======= =======
Average lease term (months) 64 24 51 57
2nd generation TI/Comm PSF $ 4.54 $ 2.73 $ 0.78 $ 3.81
Increase in 2nd generation net rents (1) 31.1% 26.3% 61.4% 32.4%
</TABLE>
(1) Represents increase in net rents on a "cash to cash" basis. (Actual
net rent at time of expiration vs. initial net rent of new lease.)
21
<PAGE>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 1999
ALL "IN-SERVICE" PROPERTIES - QUARTER ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
Office R&D Industrial Total
------ --- ---------- -----
<S> <C> <C> <C> <C>
Vacant space available @ 10/1/99 (sf) 364,329 87,024 89,099 540,452
Square footage of leases expiring or
terminated 10/1/99-12/31/99 797,929 115,632 63,904 977,465
------------ ------------ ------------ ------------
Total space for lease (sf) 1,162,258 202,656 153,003 1,517,917
============ ============ ============ ============
New tenants (sf) 260,978 2,094 63,904 326,976
Renewals (sf) 392,316 56,017 - 448,333
------------ ------------ ------------ ------------
Total space leased (sf) 653,294 58,111 63,904 775,309
============ ============ ============ ============
Space available @ 12/31/99 (sf) 508,964 144,545 89,099 742,608
============ ============ ============ ============
Net increase/(decrease) in leased space (sf) (144,635) (57,521) - (202,156)
Average lease term (months) 68 24 51 63
2nd generation TI/Comm PSF $ 10.19 $ 2.73 $ 0.78 $ 8.85
Increase in 2nd generation net rents (1) 28.0% 26.3% 61.4% 28.7%
</TABLE>
(1) Represents increase in net rents on a "cash to cash" basis
(actual net rent at time of expiration vs. initial net rent
of new lease).
22
<PAGE>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 1999
HISTORICALLY GENERATED CAPITAL EXPENDITURES,
TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS
HISTORICAL CAPITAL EXPENDITURES
<TABLE>
<CAPTION>
1993 1994 1995 1996 1997 1998 1999
---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Recurring capital expenditures $ 1,547 $ 1,812 $ 1,618 $ 1,083 $ 1,125 $ 3,543 $ 11,611
======= ======= ======= ======= ======= ======= ========
Hotel improvements, equipment upgrades $ 836 $ 1,917 $ 4,420 $ 3,041 $ 2,625 $ 3,872 $ 2,346
and replacements
======= ======= ======= ======= ======= ======= ========
</TABLE>
2ND GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS
<TABLE>
<CAPTION>
1993 1994 1995 1996 1997 1998 1999
---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Office
Square feet 451,295 690,459 768,459 970,072 1,016,427 648,291 2,115,281
--------- --------- --------- --------- ----------- --------- -----------
Tenant improvement and
lease commissions p.s.f $ 8.45 $ 9.45 $ 10.66 $ 11.40 $ 10.83 $ 9.82 $ 10.60
--------- --------- --------- --------- ----------- --------- -----------
R&D
Square feet 166,957 276,332 177,073 337,676 169,878 113,428 167,231
--------- --------- --------- --------- ----------- --------- -----------
Tenant improvement and
lease commissions p.s.f $ 5.53 $ 0.68 $ 6.99 $ 10.45 $ 2.22 $ 3.32 $ 1.94
--------- --------- --------- --------- ----------- --------- -----------
Industrial
Square feet 241,500 132,521 308,388 128,148 258,795 320,608 163,962
--------- --------- --------- --------- ----------- --------- -----------
Tenant improvement and
lease commissions p.s.f $ 0.28 $ 3.32 $ 1.00 $ 1.71 $ 0.99 $ 1.13 $ 0.60
--------- --------- --------- --------- ----------- --------- -----------
Average tenant improvement
and lease commission p.s.f $ 5.59 $ 6.51 $ 7.77 $ 10.31 $ 8.06 $ 6.57 $ 9.34
========= ========= ========= ========= =========== ========= ===========
</TABLE>
23
<PAGE>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 1999
VALUE CREATION PIPELINE - ACQUISITIONS/DISPOSITIONS/REPOSITIONS
AS OF DECEMBER 31, 1999
ACQUISITIONS
<TABLE>
<CAPTION>
Anticipated
Initial Future Total Current
Property Date Acquired Square Feet Investment Investment Investment Occupancy
-------- ------------- ----------- ---------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
ACQUISITIONS
Class A Office Buildings
Embarcadero Center Nov-98/Feb-99 4,009,536 $ 1,216,000,000 $ 37,710,000 $ 1,253,710,000 97%
Sumner Square Mar-99 205,391 32,600,000 3,500,000 36,100,000 62%
510 Carnegie Center Apr-99 234,160 48,000,000 - 48,000,000 100%
206 Carnegie Center Jul-99 161,763 27,000,000 - 27,000,000 100%
The Gateway Aug-99 487,453 117,600,000 2,500,000 120,100,000 99%
------------ ---------------- ------------- ---------------- ------
Total Value Creation Pipeline - 5,098,303 $ 1,441,200,000 $ 43,710,000 $ 1,484,910,000 96%
============ ================ ============= ================ ======
Acquisitions
</TABLE>
DISPOSITION
<TABLE>
<CAPTION>
Closing Net
Property Date Disposed Square Feet Sale Price Costs Book Value Gain
-------- ------------- ----------- ---------- ----- ---------- ----
<S> <C> <C> <C> <C> <C> <C>
8 Arlington Street Dec-99 30,526 $ 10,250,000 $ 297,000 $ 1,285,000 $ 8,668,000
</TABLE>
REPOSITIONS PLACED-IN-SERVICE DURING 1999
<TABLE>
<CAPTION>
Anticipated
Date Placed Initial Additional Total Percent
In Service Square Feet Investment Costs to Date Investment Leased
---------- ----------- ---------- ------------- ---------- ------
<S> <C> <C> <C> <C> <C> <C>
Class A Office Building
1301 New York Avenue Feb-99 177,249 $ 28,000,000 $ 16,172,339 $ 47,200,000 100%
</TABLE>
24
<PAGE>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 1999
VALUE CREATION PIPELINE - CONSTRUCTION IN PROGRESS
AS OF DECEMBER 31, 1999
<TABLE>
<CAPTION>
Estimated Placed # of
Development Properties In Service Date Location Buildings Square feet
---------------------- --------------- -------- --------- -----------
<S> <C> <C> <C> <C>
Class A Office Buildings
Orbital Sciences Phase I - Building 1 & 3 Q2 2000 Dulles, VA 2 185,028
New Dominion Tech Park - Building 1 Q4 2000 Herndon, VA 1 235,201
302 Carnegie Center Q4 2000 Princeton, NJ 1 64,565
140 Kendrick Street Q4 2000 Needham, MA 3 381,000
Market Square North (50% ownership) Q1 2001 Washington, DC 1 409,843
2600 Tower Oaks Boulevard Q1 2001 Rockville, MD 1 178,216
Orbital Sciences Phase II - Building 2 Q2 2001 Dulles, VA 1 160,502
111 Huntington Avenue - Prudential Center Q3 2001 Boston, MA 1 890,000
5 Times Square Q4 2001 New York, NY 1 1,099,154
-------- -------------
Total Development Properties 12 3,603,509
======== =============
</TABLE>
<TABLE>
<CAPTION>
Anticipated Current
Investment Total Percentage
Development Properties to Date Investment Leased
---------------------- ------- ---------- ------
<S> <C> <C> <C>
Class A Office Buildings
Orbital Sciences Phase I - Building 1 & 3 $ 16,640,084 $ 33,100,000 100%
New Dominion Tech Park - Building 1 14,755,274 48,800,000 100%
302 Carnegie Center 2,961,262 12,900,000 0%
140 Kendrick Street 31,164,307 80,565,000 100%
Market Square North (50% ownership) 40,712,449 61,631,239 (1) 33%
2600 Tower Oaks Boulevard 6,522,615 38,300,000 0%
Orbital Sciences Phase II - Building 2 3,075,236 28,710,000 100%
111 Huntington Avenue - Prudential Center 74,547,851 290,000,000 32%
5 Times Square 180,226,479 536,100,000 100%
------------------ ------------------ -----------
Total Development Properties $ 370,605,557 $ 1,130,106,239 69%
================== ================== ===========
</TABLE>
DEVELOPMENTS PLACED-IN-SERVICE DURING 1999
<TABLE>
<CAPTION>
Placed # of
In Service Date Location Buildings Square feet
--------------- -------- --------- -----------
<S> <C> <C> <C> <C>
Class A Office Buildings
One and Two Reston Overlook (25% ownership) Q1-Q2 1999 Reston, VA 2 444,286
Eight Cambridge Center Q2 1999 Cambridge, MA 1 177,226
The Arboretum Q2 1999 Reston, VA 1 95,584
200 West Street Q4 1999 Waltham, MA 1 248,341
181 Spring Street Q4 1999 Lexington, MA 1 53,306
One Freedom Square (25% ownership) Q4 1999 Reston, VA 1 414,120
502 Carnegie Center Q4 1999 Princeton, NJ 1 114,910
Hotels
Residence Inn by Marriott Q1 1999 Cambridge, MA 1 187,474
-------- -----------
Total 9 1,735,247
======== ===========
</TABLE>
<TABLE>
<CAPTION>
Investment Total Percentage
to Date Investment Leased
------- ---------- ------
<S> <C> <C> <C>
Class A Office Buildings
One and Two Reston Overlook (25% ownership) $ 17,055,653 $ 17,106,000 (2) 100%
Eight Cambridge Center 26,166,191 26,200,000 100%
The Arboretum 14,667,178 14,717,000 100%
200 West Street 43,955,623 46,000,000 100%
181 Spring Street 10,585,662 12,000,000 100%
One Freedom Square (25% ownership) 16,992,356 20,000,000 (3) 88%
502 Carnegie Center 14,673,198 18,500,000 98%
Hotels
Residence Inn by Marriott 28,411,604 28,436,604 n/a
------------- ------------------ ---------
Total $ 172,507,465 $ 182,959,604 81%
============= ================== =========
</TABLE>
(1) Represents 50% of the total anticipated project-level investment.
(2) Represents 25% of the total anticipated project-level investment.
Boston Properties acquired the remaining interest in this property
subsequent to 12/31/99.
(3) Represents 25% of the total anticipated project-level investment.
25
<PAGE>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 1999
VALUE CREATION PIPELINE - OWNED LAND PARCELS
AS OF DECEMBER 31, 1999
<TABLE>
<CAPTION>
No. of Developable
Location Parcels Acreage Square Feet
-------- ------- ------- -----------
<S> <C> <C> <C>
S. San Francisco, CA 2 3.6 275,000
Andover, MA 2 19.9 230,000
Boston, MA (1) 4 2.5 839,000
Waltham, MA 2 32.0 418,000
Rockville, MD (2) 6 111.5 1,378,216
Dulles, VA 2 91.0 1,061,500
Herndon, VA 1 16.3 235,200
Reston, VA 2 5.5 775,000
Gaithersburg, MD 2 27.0 600,000
Springfield, VA 3 9.4 130,000
-- ----- ---------
26 318.7 5,941,916
== ===== =========
</TABLE>
(1) Boston Properties has a 50% ownership interest.
(2) Includes 254,000 square feet of building on a 7.5 acre parcel under a ground
lease to a third party.
VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS
AS OF DECEMBER 31, 1999
<TABLE>
<CAPTION>
No. of Developable
Location Parcels Acreage Square Feet
-------- ------- ------- -----------
<S> <C> <C> <C>
Princeton, NJ 14 149.9 1,921,335
Cambridge, MA 1 2.6 209,000
New York, NY 1 0.5 1,194,918
-- ----- ---------
16 153.0 3,325,253
== ===== =========
</TABLE>
26
<PAGE>
EXHIBIT 99.2
[LOGO] RE: BOSTON PROPERTIES, INC.
800 BOYLSTON STREET, SUITE 400
BOSTON, MA 02199
(NYSE: BXP)
FOR FURTHER INFORMATION:
AT THE COMPANY AT THE FINANCIAL RELATIONS BOARD
Elaine Quinlan Marianne Stewart - General Info. (212) 661-8030
Investor Relations Claire Koeneman - Analyst (312) 266-7800
(617) 236-3300 Judith Sylk-Siegel - Media (212) 661-8030
BOSTON PROPERTIES, INC. ANNOUNCES
FOURTH QUARTER AND YEAR END 1999 RESULTS
REPORTS FFO PER SHARE OF $0.74
BOSTON, MA, JANUARY 25, 2000 - Boston Properties, Inc. (NYSE: BXP) today
reported results for the fourth quarter and year ended December 31, 1999.
Funds from Operations (FFO) for the quarter ended December 31, 1999 were $51.6
million, or $0.76 per share basic and $0.74 per share diluted, compared to FFO
of $43.6 million, or $0.69 per share basic and $0.68 per share diluted for the
quarter ended December 31, 1998. This represents 8.8% year to year increase in
diluted FFO per share. The weighted average number of basic and diluted shares
outstanding totaled 67,906,320 and 81,248,871, respectively, for the quarter
ended December 31, 1999 and 63,527,666 and 68,432,476, respectively, for the
same quarter last year. FFO for the year ended December 31, 1999 were $196.1
million, or $2.96 per share basic and $2.89 per share diluted, compared to FFO
of $153.0 million, or $2.52 per share basic and $2.50 per share diluted for the
year ended December 31, 1998. This represents a 15.6% year to year increase in
diluted FFO per share. The weighted average number of basic and diluted shares
outstanding totaled 66,235,417 and 79,473,337, respectively, for the year ended
December 31, 1999 and 60,776,038 and, 62,443,463, respectively, for the same
period last year.
Revenues were $205.1 million for the quarter and $786.6 million for the year
ended December 31, 1999, compared to revenues of $170.0 million and $513.8
million for the same periods in 1998. Net income available to common
shareholders for the quarter was $34.4 million and $113.9 million for the year
ended December 31, 1999, compared to $18.2 million and $93.1 million for the
same periods in 1998. Income before gain on sale and extraordinary loss per
share for the quarter ended December 31, 1999 was $0.41 per share basic and
diluted and $0.43 per share basic and $0.40 per share diluted for the quarter
ended December 31, 1998. Income before gain on sale and extraordinary loss per
share for the year ended December 31, 1999 was $1.62 per share basic and $1.61
per share diluted, compared to $1.62 per share basic and $1.61 per share diluted
for the same period last year.
-MORE-
<PAGE>
The reported results are unaudited and there can be no assurance that the
results will not vary from the final information for the quarter and year ended
December 31, 1999. In the opinion of management, all adjustments considered
necessary for a fair presentation of these reported results have been made.
As of December 31, 1999, the Company's portfolio consisted of 136 properties
comprising more than 35.6 million square feet, including twelve properties under
development totaling 3.6 million square feet. The overall occupancy rate for the
properties in service as of December 31, 1999 was 97.1%.
Additional highlights of the fourth quarter include:
- - Disposition of 8 Arlington Street, a 30,526 square foot office building in
Boston, Massachusetts, on December 14, 1999, for gross cash proceeds of
approximately $10.25 million.
- - Acquisition of a 14.3-acre site and ongoing development of a three
building, 381,000 square foot Class A office complex in Needham,
Massachusetts for approximately $31.0 million on December 14, 1999. The
office complex will be fully leased to Parametric Technology Corporation
under a 12-year lease.
- - Acquisition of a 11.9-acre site in Dulles, Virginia for approximately $2.9
million on December 1, 1999. A 160,502 square foot Class A office building
is currently under development.
- - Closing of a construction loan secured by the New Dominion Technology
development project in the amount of $48.6 million at a rate of LIBOR +
1.60% and maturing in August 2000.
- - Signing of an agreement with Allied Riser Communications Corporation
("Allied") for Allied to provide broadband data, video and voice
communications services over fiber-optic networks to 77 Class A office
buildings comprising more than 20.6 million square feet. The agreement
provides for Boston Properties to participate in any revenues Allied
generates resulting from Boston Properties' buildings and for Boston
Properties to receive 404,438 warrants for shares of common stock in
Allied.
- - Signing an agreement with Cypress Communications ("Cypress") for Cypress to
provide server-based voice, video and data transmission services to 40
Class A office buildings comprising more than 15.3 million square feet. In
return, the agreement provides for Boston Properties to participate in any
revenues Cypress generates resulting from Boston Properties' buildings and
for Boston Properties to receive 231,681 warrants for shares of common
stock in Cypress.
Transactions completed subsequent to December 31, 1999:
- - Acquisition of the Company's joint venture partner's interest in One and
Two Reston Overlook in Reston, Virginia on January 12, 2000 for
approximately $15.2 million.
-MORE-
<PAGE>
Boston Properties is a fully integrated, self-administered and self-managed real
estate investment trust that develops, redevelops, acquires, manages, operates
and owns a diverse portfolio of Class A office, industrial and hotel properties.
The Company is one of the largest owners and developers of Class A office
properties in the United States, concentrated in the Northeast Corridor from
Virginia to Greater Boston and in Greater San Francisco.
To receive Boston Properties' latest news and corporate developments via fax at
no cost, please call 1-800-PRO-INFO; use Company code BXP. Visit the Company's
web site at http://www.bostonproperties.com.
THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE
FEDERAL SECURITIES LAWS. FORWARD-LOOKING STATEMENTS ARE INHERENTLY SUBJECT TO
RISKS AND UNCERTAINTIES, MANY OF WHICH CANNOT BE PREDICTED WITH ACCURACY.
ACQUISITIONS THAT ARE PURSUED BY BOSTON PROPERTIES MAY NOT BE CONSUMMATED FOR A
VARIETY OF REASONS, INCLUDING A FAILURE TO REACH AGREEMENT WITH THE SELLING
PARTY REGARDING THE ACQUISITION PRICE OR OTHER TERMS OF A CONTRIBUTION OR
ACQUISITION AGREEMENT. AGREEMENTS THAT THE COMPANY ENTERS INTO MAY BE TERMINATED
FOR A VARIETY OF REASONS, INCLUDING A FAILURE BY THE COMPANY OR THE OTHER PARTY
TO FULFILL ALL CONDITIONS REQUIRED FOR CONSUMMATION OF THE AGREEMENTS.
Financial tables follow.
<PAGE>
BOSTON PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
( IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
Three months ended Year ended
December 31, December 31,
----------------------------------- --------------------------------------
1999 1998 1999 1998
----------------- ---------------- ------------------ ------------------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Revenue
Rental:
Base rent $ 170,663 $ 140,109 $ 646,924 $ 419,756
Recoveries from tenants 18,864 15,671 72,742 48,718
Parking and other 11,479 6,280 45,751 19,103
--------- --------- --------- ---------
Total rental revenue 201,006 162,060 765,417 487,577
Development and management services 3,344 3,517 14,708 12,411
Interest and other 797 4,449 6,439 13,859
--------- --------- --------- ---------
Total revenue 205,147 170,026 786,564 513,847-
--------- --------- --------- ---------
Expenses
Operating 64,947 53,303 249,268 150,490
General and administrative 8,110 5,753 29,455 22,504
Interest 53,964 42,934 205,410 124,860
Depreciation and amortization 31,744 24,205 120,059 75,418
--------- --------- --------- ---------
Total expenses 158,765 126,195 604,192 373,272
--------- --------- --------- ---------
Income before minority interests and
joint venture income 46,382 43,831 182,372 140,575
Minority interests in property partnerships (141) (2,163) (4,614) (2,554)
Income (loss) from unconsolidated joint
ventures (180) -- 468 --
--------- --------- --------- ---------
Income before minority interest in Operating
Partnership 46,061 41,668 178,226 138,021
Minority interest in Operating Partnership (16,452) (14,397) (64,917) (39,428)
--------- --------- --------- ---------
Income before gain on sale and extraordinary
item 29,609 27,271 113,309 98,593
Gain on sale of real estate, net of minority
interest 6,417 - 6,467 -
Extraordinary loss, net of minority interest - (9,045) - (5,481)
--------- --------- --------- ---------
Net income before preferred dividend 36,026 18,226 119,776 93,112
Preferred dividend (1,654) - (5,829) -
--------- --------- --------- ---------
Net income available to common shareholders $ 34,372 $ 18,226 $ 113,947 $ 93,112
========= ========= ========= ========
Basic earnings per share:
Income before gain on sale and
extraordinary loss $ 0.41 $ 0.43 $ 1.62 $ 1.62
Gain on sale, net 0.10 - 0.10 -
Extraordinary loss, net - (0.14) - (0.09)
--------- --------- --------- ---------
Net income available to common shareholders $ 0.51 $ 0.29 $ 1.72 $ 1.53
========= ========= ========= ========
Weighted average number of common shares
outstanding 67,906 63,528 66,235 60,776
========= ========= ========= ========
Diluted earnings per share:
Income before gain on sale and extraordinary
loss $ 0.41 $ 0.40 $ 1.61 $ 1.61
Gain on sale, net 0.09 - 0.10 -
Extraordinary loss, net - (0.13) - (0.09)
--------- --------- --------- ---------
Net income available to common shareholders $ 0.50 $ 0.27 $ 1.71 $ 1.52
========= ========= ========= ========
Weighted average number of common and common
equivalent shares outstanding 68,247 68,432 66,776 61,308
========= ========= ========= ========
</TABLE>
<PAGE>
BOSTON PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
December 31, December 31,
1999 1998
----------------------- ---------------------
(unaudited)
ASSETS
<S> <C> <C>
Real estate: $ 5,612,258 $ 4,917,193
Less: accumulated depreciation (470,591) (357,384)
----------- -----------
Total real estate 5,141,667 4,559,809
Cash and cash equivalents 12,035 12,166
Notes receivable - 420,143
Escrows 40,254 19,014
Tenant and other receivables, net 28,362 40,830
Accrued rental income, net 82,228 64,251
Deferred charges, net 50,899 46,029
Prepaid expenses and other assets 42,912 26,058
Investments in joint ventures 36,415 46,787
----------- -----------
Total assets $ 5,434,772 $ 5,235,087
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgage notes payable $ 2,955,584 $ 2,653,581
Notes payable - 420,143
Unsecured line of credit 366,000 15,000
Accounts payable and accrued expenses 66,780 42,897
Dividends payable 50,114 40,494
Accrued interest payable 8,486 7,307
Other liabilities 48,282 27,950
----------- -----------
Total liabilities 3,495,246 3,207,372
----------- -----------
Commitments and contingencies - -
----------- -----------
Minority interests 781,962 1,079,234
----------- -----------
Series A Convertible Redeemable Preferred Stock, liquidation
preference $50.00 per share, 2,000,000 shares issued
and outstanding 100,000 -
----------- -----------
Stockholders' equity:
Excess stock, $.01 par value, 150,000,000 shares
authorized, none issued or outstanding - -
Common stock, $.01 par value, 250,000,000 shares
authorized, 67,910,434 and 63,527,819 issued and
outstanding in 1999 and 1998, respectively 679 635
Additional paid-in capital 1,067,778 955,711
Dividends in excess of earnings (10,893) (7,865)
----------- -----------
Total stockholders' equity 1,057,564 948,481
----------- -----------
Total liabilities and stockholders' equity $ 5,434,772 $ 5,235,087
=========== ===========
</TABLE>
<PAGE>
BOSTON PROPERTIES, INC.
Funds from Operations
(UNAUDITED AND IN THOUSANDS)
<TABLE>
<CAPTION>
Three months ended December 31, Year ended December 31,
--------------------------------- ----------------------------------
1999 1998 1999 1998
---------------- -------------- --------------- ----------------
<S> <C> <C> <C> <C>
Income before minority interests and joint
venture income (loss) $ 46,382 $ 43,831 $ 182,372 $ 140,575
Add:
Real estate depreciation and amortization 31,914 23,930 119,583 74,649
Income (loss) from unconsolidated joint
ventures (180) - 468 -
Less:
Minority property partnership's share
of Funds from Operations 179 3,725 3,681 4,185
Preferred dividends and distributions 8,303 4,325 32,111 5,830
------------ ---------- ----------- ------------
Funds from operations $ 69,634 $ 59,711 $ 266,631 $ 205,209
============ ========== =========== ============
Funds from operations available to common
shareholders $ 51,555 $ 43,607 $ 196,101 $ 153,045
============ ========== =========== ============
Weighted average shares outstanding - basic 67,906 63,528 66,235 60,776
============ ========== =========== ============
Per share - basic $ 0.76 $ 0.69 $ 2.96 $ 2.52
============ ========== =========== ============
Weighted average shares outstanding - diluted 81,249 68,432 79,473 62,443
============ ========== =========== ============
Per share - diluted $ 0.74 $ 0.68 $ 2.89 $ 2.50
============ ========== =========== ============
</TABLE>
<PAGE>
BOSTON PROPERTIES, INC
PORTFOLIO OCCUPANCY
<TABLE>
<CAPTION>
Occupancy by Location
December 31, 1999 December 31, 1998
----------------- -----------------
<S> <C> <C>
Greater Boston 96.7% 97.0%
Greater Washington, D.C. 96.4% 98.5%
Midtown Manhattan 97.8% 99.9%
Baltimore, MD 99.7% 99.8%
Richmond, VA 98.0% 98.8%
Princeton/East Brunswick, NJ 98.9% 98.7%
Greater San Francisco 96.4% 98.5%
Bucks County, PA 100.0% 100.0%
----- -----
Total Portfolio 97.1% 98.4%
===== =====
<CAPTION>
Occupancy by Type
December 31, 1999 December 31, 1998
----------------- -----------------
<S> <C> <C>
Class A Office Portfolio 97.7% 98.8%
R&D Portfolio 93.0% 99.2%
Industrial Portfolio 90.4% 89.3%
---- ----
Total Portfolio 97.1% 98.4%
==== ====
</TABLE>
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